SoftBank shares have fallen 50% from their June peak as the company targets the acquisition of Allied Universal. Bloomberg Intelligence projects at least $6 billion in cash outflows for the fiscal year ending March 2027, which could push the loan to value ratio toward the company's internal 25% cap. SoftBank holds a roughly 13% stake in OpenAI through a cumulative $64.6 billion investment and recently sold its entire Nvidia holding to generate liquid capital.
Tuesday, October 20, 2026
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SoftBank Credit Risk Hits 4 Year High After OpenAI's $30B Capital Raise
Business7 hours ago
The costs of insuring the debt of the Japanese investment firm jumped to 432 basis points on Wednesday, a surge of 12 basis points overnight. This level represents the highest since November 2022 and follows news that OpenAI is raising $30 billion from SoftBank and MGX at a $1.4 trillion valuation. The spike in credit default swaps reflects investor anxiety over how the company will finance its aggressive artificial intelligence investments.
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